While investors have been willing to take riskier bets on the notion that central banks are likely to flood markets with cash early next week, contagion risks still abound.

Some experts say that a Greek exit from the eurozone could thrust global markets into a state of chaos.

"The market has been grinding higher today on the thought that we'll get some sort of resolution with Greece this weekend," said Douglas DePietro, managing director in institutional equities at Evercore Partners.

Shares of the National Bank of Greece (NBG) rose 13% and GREK (GREK), a Greek ETF, jumped 9%.

Investors were heartened after European central bankers signaled they would provide more cash to help banks deal with the ongoing sovereign debt crisis.

Early Friday, European Central Bank President Mario Draghi said the bank would "continue to supply liquidity to solvent banks where needed." He said strengthening European economies is crucial, and that it's time to implement plans to spur long-term growth.

Draghi's comments came one day after Bank of England Governor Mervyn King said the central bank and the Chancellor of the Exchequer are working on new policies to provide funding to banks for "several years" at rates below current market rates.

Outside of England, sky-high borrowing costs in Italy and Spain still have investors on edge.

The yields on Spanish 10-year bonds improved slightly Friday, falling to 6.95% from the high just above 7% early Thursday.

Economy: The Empire State Manufacturing Index plummeted to 2.3 in June, according to the Federal Reserve Bank of New York, down from 17.1 in May. The index was expected to stand at 13.5, according to a consensus of economist forecasts from Briefing.com.

The University of Michigan Consumer Sentiment Index for June slid to 74.1 from 79.3 in May. The number fell below expectations of 77, according to a consensus from Briefing.com.

Companies: Shares of Facebook (FB) spiked more than 6%, giving the company a second-straight day of gains. This would be only the second instance of two-day gains since its IPO on May 18.